SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?


To: Zack P who wrote (9690)12/31/2001 10:18:07 AM
From: Moominoid  Respond to of 19219
 
You can read exactly the opposite strategy espoused to - i.e. rebalancing....



To: Zack P who wrote (9690)12/31/2001 11:12:50 AM
From: Casaubon  Respond to of 19219
 
IMHO, entry is the defining factor to long term success. From the entry price one should know an exact exit price for the potential loss (loss limit). Defining the exit price for a winner is not knowable (as far as I have been able to determine). The exit price for a winner should be discerned by a failure at some consolidation zone during the runup. Thus the exit price of a winner does not have a predetermined value, again IMHO.



To: Zack P who wrote (9690)12/31/2001 12:22:46 PM
From: Dominick  Respond to of 19219
 
Cut your losses and let your winners run. Ah. so simple…so true....but you know I‘ve never understood the reasoning behind it.

IMO it's basically the same as cold-calling or telemarketing. You have to get through those bunch of "no's" to get that "yes". Since time is money, and there's one born every minute, you can't afford to waste it with anything that negatively effects your bottom line.

It's the same with stocks, if it's a no, cut it short and move on to the next one.

Dominick



To: Zack P who wrote (9690)12/31/2001 1:13:10 PM
From: Bull RidaH  Respond to of 19219
 
It works because the vast majority of stockholders will sell as the stock rises, providing supply which prevents the mm's from being forced short. Works in reverse in heavily shorted stocks falling.



To: Zack P who wrote (9690)12/31/2001 5:25:46 PM
From: J. P.  Respond to of 19219
 
A 50% loss needs to be offset by a 100% gain. Thus in the long run minimizing losses becomes more important than creating gains.

I think the old saw about letting your winners run is kinda open ended. How about telecom stocks? Maybe letting winners run with trailing stops...but what about whipsaws where the market makers run all the stops?

I guess nothing in the market can be over simplified.